The CFTC complaint, filed on April 16, 2003, alleges that, between at
least November 2001 and October 2002, Dias, Smith, and Krute
solicited, accepted, and pooled in excess of $2 million from at least
13 members of the general public to participate in, among other
things, an unregistered commodity pool to trade commodity futures and
option contracts. Defendants then allegedly misappropriated
approximately $530,000 of the pool’s funds to pay for personal
and unauthorized business expenses, transferring approximately
$150,000 to Iceland Management Systems, Inc. of Agoura Hills,
California, and others who had no legitimate entitlement to those
funds. The CFTC has named Iceland Management Services, Inc. as
a relief defendant. The CFTC complaint also charges the defendants
with registration violations and with failing to provide required
periodic account statements to pool participants.

The CFTC is seeking preliminary and permanent injunctive relief,
repayment of ill-gotten gains and customer losses, and civil
penalties.

The National Futures Association assisted the CFTC staff in this
investigation. The following CFTC Division of Enforcement staff are
responsible for the case: Gretchen L. Lowe, Karen Kenmotsu, Jason
Gizzarelli, and Lenora Kay Majors-Guy.